It’s an underpublicised certainty that a Chalfont St Peter residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Chalfont St Peter property prices.Once your lease nears 85ish years, you need to start considering a lease extension. If the number of years remaining slips below 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most leasehold owners in Chalfont St Peter will be able to extend under the legislation; however a conveyancer will be able to confirm whether you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your lawyer throughout the formalities.
Leasehold properties in Chalfont St Peter with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Chalfont St Peter,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Chalfont St Peter valuers.
In the wake of 9 months of lengthy discussions with the freeholder of her leasehold apartment in Chalfont St Peter, Jasmine initiated the lease extension process as the 80 year mark was fast nearing. The legal work was finalised in May 2009. The freeholder’s costs were kept to an absolute minimum.
In 2014 we were e-mailed by Mr and Mrs. U Garcia who, having took over the lease of a garden apartment in Chalfont St Peter in November 2008. The dilemma was if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Comparable properties in Chalfont St Peter with 100 year plus lease were in the region of £225,800. The average ground rent payable was £60 collected every twelve months. The lease ran out on 19 March 2086. Taking into account 60 years unexpired we estimated the premium to the freeholder for the lease extension to be within £23,800 and £27,400 not including professional charges.
An example of a Lease Extension matter before the tribunal for a Chalfont St Peter flat is Flats 8, 11 and 15 Craigmore Court 46 Murray Road in December 2013. The tribunal held that the price payable by the Applicant tenant of Flat 8 to acquire an extended lease shall be £26,438 plus £1 to the intermediate lessee . The tribunal held that the price payable by the Applicant tenants of Flat 11 to acquire an extended lease shall be £26,791 plus £1 to the intermediate lessee. The tribunal held that the price payable by the Applicant tenant of Flat 15 to acquire an extended lease shall be £26,638 plus £1 to the intermediate lessee . This case related to 3 flats. The unexpired term as at the valuation date was 71 years.